Housing sales in top 15 tier-II cities dip 10%, launches fall 6%: Report

Sales volumes in top 15 Tier II cities fall 10% to 1.56 lakh units in 2025, while value stays flat at Rs 1.48 trillion as premium housing gains share, says PropEquity

With housing sales value remaining flat at Rs 1.48 trillion across the top 15 Tier II cities in 2025, sales volumes declined 10 per cent year-on-year (Y-o-Y) to 1,56,181 units, reflecting rising housing prices and increasing premiumisation, according to a report by PropEquity.

 

According to the real estate data analytics firm, the growing shift towards high-ticket housing is evident in the numbers. Homes priced below Rs 1 crore recorded a 15 per cent Y-o-Y decline in volumes in 2025, with their share falling to 72 per cent from 77 per cent in 2024. In contrast, homes priced above Rs 1 crore saw a 9 per cent increase in sales, with their share rising to 28 per cent from 23 per cent during the same period.

   

Samir Jasuja, founder and chief executive officer of PropEquity, said, “The slowdown in housing sales over the past two years is largely due to a shrinking supply of homes priced below Rs 1 crore — a segment that has traditionally driven demand in Tier II cities. Rising land and construction costs, along with changing buyer aspirations, are pushing new launches into higher price brackets. As a result, Tier II markets are increasingly mirroring Tier I cities, where volumes are declining even as prices continue to rise.”

 

Except for Mohali and Lucknow, which saw growth in sales volume of 34 per cent and 6 per cent Y-o-Y, respectively, the other 13 cities recorded declines of up to 38 per cent, with Visakhapatnam witnessing the sharpest fall.

 

Looking ahead, PropEquity noted that Ahmedabad can be regarded as a Tier I city, having outpaced several established Tier I markets in both housing launches and absorption. Given the scale of development and the depth of demand it now commands, the city earns its place among India’s leading urban markets.

 

Jasuja added, “Government focus on Tier II cities through enhanced urban development, improved connectivity, and the creation of industrial corridors and manufacturing hubs has driven sustained price appreciation. This has pushed even average housing units in many Tier II markets beyond the Rs 1 crore mark, leading to slower absorption.”

 

Going forward, PropEquity said this trend could become a concern as affordability pressures begin to impact not just premium segments but also affordable and mid-income housing in these cities.

 

New housing supply across the top 15 Tier II cities fell 6 per cent to 1,36,243 units in 2025, compared with 1,45,139 units in 2024. The slowdown was visible across price brackets — launches of homes priced below Rs 1 crore declined 5 per cent, while those above Rs 1 crore dropped 8 per cent.

 

Only four cities — Mohali (up 108 per cent), Bhopal (66 per cent), Ahmedabad (3 per cent) and Jaipur (2 per cent) — recorded growth in new launches. The remaining 11 cities saw declines of as much as 57 per cent, with Bhubaneswar registering the sharpest fall. Notably, the four Gujarat cities together accounted for 64 per cent of total launches in 2025.   

Total Absorption (No. of units)
Location	2024	2025	% Change
Ahmedabad	55315	51148	-8%
Surat	23342	19835	-15%
Vadodara	17045	13798	-19%
Gandhi Nagar	13884	13710	-1%
Nashik	12492	11188	-10%
Jaipur	10271	9758	-5%
Nagpur	7653	6260	-18%
Mohali	4554	6118	34%
Bhubaneshwar	6538	4885	-25%
Lucknow	3812	4053	6%
Coimbatore	3854	3702	-4%
Bhopal	3804	3599	-5%
Goa	3518	3507	0%
Visakhapatnam	3858	2406	-38%
Kochi	2659	2214	-17%
Top 15 tier 2 cities	172599	156181	-10%

Source: PropEquity   

New Supply (No. of units)
Location	2024	2025	% Change
Ahmedabad	47344	48646	3%
Surat	19905	17256	-13%
Gandhi Nagar	14712	12829	-13%
Jaipur	8665	8803	2%
Mohali	4128	8606	108%
Vadodara	11104	8367	-25%
Nashik	8540	8222	-4%
Nagpur	6121	5485	-10%
Bhopal	1999	3312	66%
Coimbatore	3681	3251	-12%
Lucknow	5076	2884	-43%
Bhubaneshwar	6674	2840	-57%
Goa	2799	2749	-2%
Visakhapatnam	2455	1155	-53%
Kochi	1936	1838	-5%
Top 15 tier 2 cities	145139	136243	-6%

Source: PropEquity